Air India to become a low-fare carrier

The Maharaja will have to give up his full-service carrier status and transform into a commoner — low-fare airline — on most domestic routes to survive.

On Wednesday, PM Manmohan Singh spent 90 minutes with aviation ministry honchos on the cash-strapped airline’s woes and its demands for a bailout from the government. While he is learnt to have promised support to the national carrier, it was made abundantly clear that any bailout will come if — and only if — Air India is able to shed its flab, become competitive and completely transform itself. Otherwise, it’s curtains for the airline.

After meeting the PM, aviation minister Praful Patel said the government has formed a four-member committee of secretaries — headed by the cabinet secretary and comprising of the finance, aviation secretaries and principal secretary to the PM. READ MORE….

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